Estimating the Censored Demand for U.S. Cheese Varieties Using Panel Data: Impact of Economic and Demographic Factors

Yasser Bouhlal, Oral Capps and Ariun Ishdorj ()

No 151298, 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. from Agricultural and Applied Economics Association

Abstract: The United States cheese consumption has grown considerably over the years. Using Nielsen Homescan panel data for calendar years 2005 and 2006, this paper examines the effect of economic and socio-demographic factors on the demand for disaggregated cheese varieties. In this study, we estimated the censored demand for 14 cheese varieties and identified the respective own-price and cross-price elasticities. Also, non-price factors were determined affecting the purchase of each variety as well as the impact of generic dairy advertising. Results revealed that most of the natural cheese varieties have an elastic demand while the processed cheese products exhibited inelastic demands. Strong substitution and complementarity relationships were identified as well, and a two quarter carry-over effect of advertising was observed for most of cheese demands. Results also showed that household demographics affected the demands differently, depending on the nature of the cheese varieties.

Keywords: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 37
Date: 2013
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea13:151298

DOI: 10.22004/ag.econ.151298

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